Investments in Unconsolidated Joint Ventures

3 Months Ended

Feb. 28, 2015

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Joint Ventures

Investments in Unconsolidated Joint Ventures

We have investments in unconsolidated joint ventures that conduct land acquisition, land development and/or other homebuilding activities in various markets where our homebuilding operations are located. We and our unconsolidated joint venture partners make initial and/or ongoing capital contributions to these unconsolidated joint ventures, typically on a pro rata basis, according to our respective equity interests. The obligations to make capital contributions are governed by each such unconsolidated joint venture’s respective operating agreement and related governing documents.

We share in the profits and losses of these unconsolidated joint ventures generally in accordance with our respective equity interests. In some instances, we recognize profits and losses related to our investment in an unconsolidated joint venture that differ from our equity interest in the unconsolidated joint venture. This may arise from impairments that we recognize related to our investment that differ from the impairments the unconsolidated joint venture recognizes with respect to its assets; differences between our basis in assets we have transferred to the unconsolidated joint venture and the unconsolidated joint venture’s basis in those assets; our deferral of the unconsolidated joint venture’s profits from land sales to us; or other items. There were no joint venture impairment charges for the three-month periods ended February 28, 2015 or 2014.

The following table presents combined condensed information from the statements of operations of our unconsolidated joint ventures (in thousands):

	Three Months Ended February 28,
	2015			2014
Revenues	$	3,210		$	6,118
Construction and land costs	(3,743		)	(3,523		)
Other expense, net	(696		)	(1,130		)
Income (loss)	$	(1,229	)	$	1,465

The following table presents combined condensed balance sheet information for our unconsolidated joint ventures (in thousands):

	February 28, 2015		November 30, 2014
Assets
Cash	$	18,661	$	23,699
Receivables	5,427		5,106
Inventories	153,900		153,427
Total assets	$	177,988	$	182,232
Liabilities and equity
Accounts payable and other liabilities	$	14,157	$	10,824
Equity	163,831		171,408
Total liabilities and equity	$	177,988	$	182,232

The following table presents information relating to our investments in unconsolidated joint ventures (dollars in thousands):

	February 28, 2015		November 30, 2014
Number of investments in unconsolidated joint ventures	6		6
Investments in unconsolidated joint ventures	$	73,502	$	79,441
Number of unconsolidated joint venture lots controlled under land option contracts and other similar contracts	484		618

In the first quarter of 2014, we sold our interest in an unconsolidated joint venture in Maryland for $10.1 million, which resulted in a gain of $3.2 million that was included in equity in income of unconsolidated joint ventures in our consolidated statement of operations for the three months ended February 28, 2014. None of our unconsolidated joint ventures had outstanding debt at February 28, 2015 or November 30, 2014.